Several restaurants in Jackson insist on providing two-for-one deals. As a customer, I’m not complaining. I find a partner or several sets of partners in crime, and we head out to taste restaurants that I would otherwise not frequent during the year.
While I’m not in the restaurant business, I would think this to be a big mistake from a business point of view. I feel most restaurants could benefit more from using the Hole Coupon Book to advertise off-season deals over traditional two-for-ones and I will explain some of my reasoning.
#1 Two-for-one deals can mean a loss of revenue. A two-for-one deal guarantees that you lose 50% of your income, assuming the customers order nothing else on the menu. You are thus gambling on customers ordering appetizers, dessert, and drinks with their meals. Most of your clients will order these with their meals, however, the clientele that traditionally comes out for two-for-ones tries to go as cheap as possible and will limit their extra spending when possible.
Depending on the sort of coupon you provided, you could still entice a large crowd during the off-season while minimizing the loss of two-for-ones. For example, if you were to offer a 20% off your food bill or a 10% off your total bill, you would still entice a large crowd while potentially saving revenue. You would need to look at what makes the most sense for your restaurant as each restaurant marks their products up differently.
#2 Traditional two-for-one deals do not ensure valley-wide awareness. Advertising for two-for-ones is traditionally done through the newspaper, which involves someone searching out the information. Unless you are aggressive in spreading the news via social media, friends, and family, the news does not always get out or worse yet, it may be forgotten. If you offer a coupon with the Hole Coupon Book, your initial cost is $525 and your coupon is delivered to 15,000 mailboxes in the valley. The information is handed to potential customers. Did I mention the cost of the coupon is the same as running an 2 by 3″ color ad in the Daily for a week?
#3 The Hole Coupon Book provides you with a way to track your spending. Calculating your ROI can be challenging. However, by tracking the number of coupons returned to you and knowing that each coupon cost you only 4 cents, you can calculate your ROI and determine how effective it is for you. Plus, the rates have stayed the same for the last several years and there is no intention of increasing them due to the added benefit this book creates for the community.
#4 The Hole Coupon Book is a way to stand out above the rest and not limit your clientele. When you are on a list of several other restaurants that are providing two-for-ones, you do not stand out. You are saying “My food is only half the value that I charge you.” What about those people who do not join their friends for dinner for fear of being the 5th wheel?
Providing an off-season coupon is not a losing endeavor. In fact, it can be a win-win for all. You can gain more revenue, and still provide a great offseason deal to locals. You will entice them to visit your restaurant and keep you going during the slow months. Just something to consider as you are gearing up for this fall!